Project Reinvest: Background

PROJECT REINVEST 1

Project Reinvest: Background Project Reinvest will provide open and competitive grant opportunities to nonprofit organizations and other qualified entities. Eligible uses of Project Reinvest grants will include those efforts designed to: 1. Project Reinvest: Homeownership Support down-payment lending to low- and moderate- income individuals. 2. Project Reinvest: Neighborhoods Promote stabilization and revitalization in areas hit hard by foreclosure. 3. Project Reinvest: Financial Capability Assist individuals in stabilizing their finances, rebuilding credit and establishing savings. 2

Program Details Project Reinvest: Financial Capability will provide grant funding to eligible: Financial Capability Intermediaries (FC Intermediaries) National: Min. 10 Sub-grantees, Branches, or Affiliates Regional/State: Min. 5 Sub-grantees, Branches, or Affiliates Must have min. 3 years of experience with FC services HUD-Approved Housing Counseling Intermediaries (HC Intermediaries) State Housing Finance Agencies (State HFAs) NeighborWorks organizations (NWOs) HC Intermediaries, State HFAs, and NWOs must have min. 12 months of experience with FC services The Financial Capability grant funds are primarily intended to help individuals who are at risk of foreclosure, recovering from a foreclosure or residents in distressed communities rebuilding after the foreclosure crisis. Review Section IV of Funding Announcement for details on eligibility & Section II for definitions of key terms. 3

Timeline ACTION Funding announcement released and public comment summary released ANTICIPATED DATE Dec. 22, 2016 Application launch Jan. 19, 2017 Webinar on funding opportunity and application Application closes Jan. 25, 2017 @ 3 PM EDT Mar. 2, 2017 @ 8 PM EDT Application review period March-April 2017 Award determination May 2017 (Subject to Change) NeighborWorks America reserves the right to make changes to this timeline, if necessary, at its sole discretion. 4

Funding At least $31,500,000 is expected to be made available through a national competitive grant competition with funds targeting Metropolitan Statistical Areas (MSA) and rural areas identified as areas of high need. NeighborWorks America anticipates allocating this pool of funds as follows: Use Financial Capability Counseling/Coaching, Program Related Support, and Operational Oversight Fund Allocation Approximately $29,500,000 Matched Savings Approximately $2,000,000 5

Targeting At least 75 percent of all Project Reinvest: Financial Capability Awards will be awarded to serve people in distressed communities identified at the MSA level for urban areas and at the state level for rural areas using a methodology designed to determine areas of high need. Project Reinvest: Financial Capability Awards will primarily target individuals who are at risk of foreclosure, recovering from a foreclosure or residents in distressed communities rebuilding after the foreclosure crisis. The geographic targeting takes into consideration economic, employment, and housing indicators to identify eligible MSAs. Please see Section VII(F) of the Funding Announcement for more details on the Target Methodology. The Areas of Extraordinary Need and Areas of Greatest Need methodology and analysis is also posted to www.nw.org/projectreinvest. 6

Eligible Financial Capability Activities A. Project Reinvest: Financial Capability Counseling/Coaching Activities B. Project Reinvest: Financial Capability Matched Savings Activities C. Additional Administrative Requirements for Eligible Financial Capability Activities 7

Eligible Financial Capability Activities A. Project Reinvest: Financial Capability Counseling/Coaching Activities - Grantees will be required to provide up to two tiers of Financial Capability Counseling/Coaching to clients. Tier 1A services are an introduction to Financial Capability Counseling/Coaching. Tier 1B services are optional, and provide additional services that elevate the financial education and capability of the client. The tiers of service are sequenced such that clients must complete Tier 1A before receiving Tier 1B service. Because Tier 1B involves making updates to the content discussed in the initial Tier 1A counseling/coaching session, Grantees cannot provide Tier 1B services to clients who have not first completed Tier 1A. 8

Snapshot of Tier 1A & Tier 1B Counseling/Coaching Services SERVICE TIER 1A SESSION TIER 1B SESSION* Intake Required n/a; completed in Tier 1A Assessment Required n/a; completed in Tier 1A Financial Well-Being Measurement (CFPB Scale) Required Required Credit Report (Review and Discuss) Required Pull/review subsequent credit report if client set goal of working on credit in Tier 1A session Budget Required Required (updated budget) Action Plan Required Required (updated action plan) Financial Education Required Optional Referrals As needed by client As needed by client Follow-up Required (w/in 30 days) Required (w/in 5 months) *Required if client completes Tier 1B session. Some clients may opt only to complete an initial Tier 1A counseling/coaching session. The above table is a high-level overview of Tier 1A/1B Counseling/Coaching. Review Section V of Funding Announcement for full details of Tier 1A/1B services and client-file documentation required. 9

Eligible Financial Capability Activities B. Project Reinvest: Financial Capability Matched Savings Activities Project Reinvest: Financial Capability Matched Savings grant funds, the Applicant must meet the following requirements: Be an Awardee of Project Reinvest: Financial Capability grant funds. Provide Tier 1B counseling/coaching. Provide demonstrated experience of an existing Matched Savings Program. See Section V(B) of the Funding Announcement for minimum participation requirement Double enrollment of clients in the Matched Savings Program is prohibited. The Matched Savings program must be the Direct Grantee s program; it cannot be a program that the Sub-grantee independently administers. Note: Matched Savings funding may only be used to match participant deposits. Grantees that receive Matched Savings funds may opt to use some of their Program-Related Support funds for program-related matched savings costs. 10

Eligible Financial Capability Activities C. Additional Administrative Requirements for Eligible Financial Capability Activities include: Collecting a signed authorization form from the client. Providing a copy of organization s privacy policy to all clients. Ensuring that duplicate client billing does not occur. Compliance with data collection and management requirements as detailed in Section V(C)(4) of the Funding Announcement. 11

Evaluation Criteria Experience of Applicant Program Design/Management Organizational Capacity Proposed Financial Capability Counseling/Coaching Services and Impact Responsiveness to Areas of Need 12

Calculation of Grant Award Amounts Grant requests calculated on a fixed basis: $300 per Tier 1A Counseling/Coaching unit delivered. $150 per Tier 1B Counseling /Coaching unit delivered. Program-Related Support: 20% of Counseling/Coaching award. Operational Oversight (for FC Intermediaries, HC Intermediaries, and State HFAs): 7% of Counseling/Coaching award). Minimum grant request $50,000. Maximum grant request $3,000,000 (not including Matched Savings). See Section VI of the Funding Announcement for details on eligible uses of Program-Related Support and Operational Oversight funds. 13

Disbursement Schedule Following the successful acceptance of the documents requested in the Notice of Intent and execution of the Grant Agreement, NeighborWorks America will release an initial grant disbursement of: 35 percent of the Financial Capability Counseling/Coaching Award, 70 percent of the Program-Related Support Award, and 35 percent of the Operational Oversight Award (FC Intermediaries, HC Intermediaries and State HFAs only). Subsequent disbursements will be made upon achievement of counseling/coaching production thresholds, and meeting additional requirements. See Section IX of the Funding Announcement for the full disbursement schedule. 14

Reporting* 1. Quarterly Progress Reports: Reporting includes detailed questions regarding progress against aggregate counseling/coaching goals and includes a narrative section on overall Project activities, successes and challenges encountered, as well as a itemization of project expenditures. 2. Final Report: due no later than 45 days after the end of the grant's Performance Period and includes the same items as the quarterly report as well as a revenue and expenditure report. *Please see Exhibit C: Required Data Points, posted on www.nw.org/projectreinvest for an example of the draft Quarterly Report. 15

Quality Control and Compliance Grantees will be monitored throughout the PRV: Financial Capability grant award performance period to ensure compliance with all terms, conditions and requirements of the Award. Compliance monitoring will be conducted throughout the performance period and will include both onsite and remote review by Quality Control and Compliance staff and/or a third-party on behalf of NeighborWorks America. General Compliance The following documentation will be collected and reviewed at time of application and/or throughout the performance period: Review of Independent Audit documentation Proof of Insurance Adherence to the Records Retention Policy Personally Identifiable Information (PII) Policy 16

Quality Control and Compliance Standard Programmatic and Client File Compliance NeighborWorks America will conduct onsite and remote compliance monitoring to ensure Grantee compliance with the grant award. The testing procedures will include, but are not limited to the following: Standard Programmatic: Expenditure testing, Oversight Plan (monitoring) of sub-grantees, branches, affiliates and/or CCEs, confirmation of a Representations and Warranties Certification, confirmation of an Memorandum of Understanding in regards to translation services Client File Review: Intake, Assessment, Financial Well-Being Measurement, Credit Report, Budget, Action Plan, Financial Education, Referrals and Follow-up Events of Default and Remedy Grantees will be subject to the policies and procedures outlined in the Project Reinvest Events of Default and Remedies Policy, which detail the conditions that may result in suspension, recapture, or de-obligation of funds and provides the Grantee with guidance on mitigating risk of Events of Default. 17

Navigating the NeighborWorks America Grants Portal 1. Users can access the NeighborWorks America Grants Portal at: https://neighborworks.fluxx.io 2. Create an Account and Log In 18

Grants Portal Registration NeighborWorks America has implemented a new online grants system. The second grant opportunity to utilize the new system will be Project Reinvest: Financial Capability. 19

Grants Portal Registration One registration per organization is permitted within the NeighborWorks Grants Portal Network members will need to register to receive a username and password for your organization Login credentials from the previous GrantWorks system will not work in the new system Authorized Official 20

Grants Portal Registration Portal User Types Authorized Official: full rights to edit, save, delete and submit an application Organization Editor: full rights to edit, save and delete application content 21

Grants Portal User Guide Provides helpful information and tips for accessing the NeighborWorks America Grants Portal and submitting a Project Reinvest application such as: Create an Account and Log In Create or Reset Your Password Portal User Types NeighborWorks America Grants Portal Create an Application or Locate a Saved Application Save and Review Your Application Upload Attachments Submit Your Application 22

Application Guide Provides detailed instructions, definitions and examples not available in the actual full application. FAQ Document Answers, explanations, and clarifications for common questions about Project Reinvest: Financial Capability. 23

Office Hours NeighborWorks America is pleased to offer a series of open Question and Answer sessions with Project Reinvest staff for 30-minutes each to discuss Project Reinvest: Financial Capability timelines, program details and more. The first session will be held on Feb 2 nd at 3 PM EDT Please visit the Project Reinvest: Financial Capability webpage for more information. 24

Information on Project Reinvest: www.neighborworks.org/projectreinvest Project Reinvest: Financial Capability http://neighborworks.org/projectreinvestfinancialcapability Technical Support Questions For technical related issues, please call our technical support line at 1-866-720-1807 with any technical questions or if you experience difficulties with the NeighborWorks America online Grants Portal. Hours of operation: 9:00 am to 6:00 pm EDT. This phone number is a help desk for the online application system only. For all other inquiries please email: projectreinvest@nw.org 25